Examples of Hurdle Rate in a sentence
Market Value Hurdle (MVH) =$600,000; Current Year Beginning Market Value= $600,000; Year End (Dec 31st) Market Value= $550,000; Hurdle Rate= 6%; Portfolio Return during the Year= (8.33%); Average Month-End Assets Under Management (AUM) during Year= $582,000; Net Contributions (Withdrawals) (NCW) during the Year= $0.
The Graduated 10% Hurdle Rate is a variable scale the Fund (§ 2.1) uses to determine the amount of Management Fee (§ 3.11) and Performance Allocation (§ 3.12) to charge to the Limited Partners (§ 4.1) based on the Fund’s Performance (§ 6.12).
Applicants are invited to include proposals in their Business Plan in relation to the Carried Interest percentage and the catch up mechanism (if any) for the Fund Manager in relation to the Hurdle Rate.
To determine the Graduated 10% Hurdle Rate the annualized Performance in percentage is multiplied by 10.
Distribution of the Fund’s income The Financial Instrument will benefit from the State Aid Scheme whereby the net return of the Business Financing Fund will be capped at the level of the Hurdle Rate (as defined below) with distributions in excess of such amount being available as an incentive for the benefit of independent private investors and the Fund Manager.